Artificial Intelligence (AI) is transforming higher education (HE), bringing both opportunities and challenges. As lecturers play a key role in the effective integration of AI in university teaching, this study focuses on two essential factors: AI literacy and trust in AI. To explore these dimensions, a survey was conducted among university lecturers in Austria and Serbia. The study assessed educators’ self-reported AI literacy and examined their levels of trust in AI across various educational contexts. The findings offer a nuanced understanding of how lecturers perceive and engage with AI, highlighting potential gaps and strengths in their preparedness. This analysis provides valuable insights that can serve as a basis for the development of future university policies aimed at supporting the thoughtful and effective use of AI in higher education. By addressing both competence and confidence in AI, the study contributes to a more informed and strategic approach to digital transformation in academic settings, especially since the majority of existing research predominantly focus on students’ engagement with AI.